Jovian Reports Results for Third Quarter Fiscal 2013

TORONTO, Feb. 12, 2013 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian") today released its results for the three and nine months ended
December 31, 2012. The current fiscal year consolidates the results of
Hahn Investment Stewards & Company Inc. ("Hahn"), which Jovian acquired control of on March 31, 2012; prior to that
date, Jovian accounted for its investment in Hahn under the equity
method.

Q3 Fiscal 2013 Highlights

Jovian issued a special dividend of $3.00 per common share using
proceeds received from the sale of Jovian's mutual fund dealer
subsidiary MGI Financial Inc. ("MFI") and its Exchange Traded Fund ("ETF") business, transactions that were completed in fiscal 2012. The
special dividend coincided with the release of certain funds Jovian
received from the sale of its ETF business but which had been held in
escrow.

Revenues of $12.6 million, a 5% decrease from the $13.2 million revenues
from continuing operations recorded in Q3 fiscal 2012, resulting from a
decline in revenues in the wealth management segment partially offset
by an increase in revenues in the asset management segment, including
from Hahn.

EBITDA and Adjusted EBITDA from continuing operations of negative $1.3
million versus negative $11.8 and negative $11.5 million, respectively,
in the comparable quarter in fiscal 2012. The comparable quarter
included a profit pool payment provision (the "Profit Pool Payment Provision") of $12.2 million, adjusted in the subsequent quarter to $7.0 million.

Loss from continuing operations of $1.7 million, or negative $0.19 per
diluted share, compared to a loss of $7.3 million, or negative $0.86
per diluted share, in Q3 fiscal 2012. The comparable quarter's results
included the Profit Pool Payment Provision.

Net loss of $1.7 million, or negative $0.19 per diluted share, compared
to net earnings (including from discontinued operations) of $57.1
million, or $6.58 per share in Q3 fiscal 2012. The comparable quarter's
results included the Profit Pool Payment Provision and a $66.2 million
non-recurring gain, net of taxes, from Jovian's sale of MFI and the ETF
business during that quarter.

Client assets (exclusive of discontinued operations) of $6.7 billion as
at December 31, 2012, a 6% increase from $6.3 billion as at December
31, 2011 and a 6% increase from $6.3 billion as at September 30, 2012.

"We are pleased with the top line growth in our profitable asset
management segment and have a very positive view of all of our
companies in this segment," said Philip Armstrong, C.E.O. "Our performance numbers continue to be strong and we are diversifying
our client base, including winning a number of significant
institutional and First Nations mandates."

"However, significantly lower trading volumes continued to negatively
impact brokerage commissions and investment banking revenues in our
wealth management segment during the quarter," continued Mr. Armstrong. "Impressive equity market returns in the calendar year 2012 is a
positive indicator, though, particularly if it results in an increase
in investor confidence in equities, which has been shaken by market
volatility and the uncertain economic environment."

"Finally, we feel that the payment of $7 in distributions during the
nine months was significant and illustrates our commitment to ensure
that our shareholders benefit from the growth in the value of our
assets," concluded Mr. Armstrong.

Selected Financial Data (unaudited)

thousands of Canadian dollars except per shareamounts

Three months ended

Nine months ended

Dec. 31/12

Dec. 31/11

Dec. 31/12

Dec. 31/11

Revenues

12,622

13,236

38,298

34,928

Compensation and benefits, management and
investment advisory fees, and other operating
expenses

13,932

24,750

41,241

49,080

Adjusted EBITDA1 from continuing operations

(1,310)

(11,514)

(2,943)

(14,152)

Share-based compensation expense2

—

288

—

646

EBITDA1 from continuing operations

(1,310)

(11,802)

(2,943)

(14,798)

Loss from continuing operations

(1,764)

(7,294)

(5,701)

(12,382)

Earnings from discontinued operations

—

64,390

—

60,815

Earnings (Loss) for the period

(1,764)

57,096

(5,701)

48,433

Loss from continuing operations per share -
basic & diluted

$(0.19)

$(0.86)

$(0.60)

$(1.44)

Earnings (Loss) per share - diluted

$(0.19)

$6.58

$(0.60)

$5.67

1

EBITDA and Adjusted EBITDA are non-IFRS performance measures utilized by
Jovian. EBITDA is defined here as earnings before finance costs, taxes,
depreciation and amortization, gains on sale and other income or
expense, and share of profit or loss of equity accounted investees (net
of income tax). Adjusted EBITDA is EBITDA adjusted for additional
non-cash items.

2

For measurement purposes, share-based compensation expense, which is a
non-cash item, is excluded from compensation and benefits expense in
this table in order to determine Adjusted EBITDA.

Financial Review

Revenue from continuing operations

Three months ended December 31

thousands of Canadiandollars

AssetManagement

WealthManagement

Corporate

Consolidated

2012

2011

2012

2011

2012

2011

2012

2011

Commissions and fees

8,105

7,221

3,156

3,354

15

16

11,276

10,591

Investment banking

-

-

676

1,284

58

(318)

734

966

Principal trading

-

-

71

891

-

-

71

891

Other

40

18

306

347

195

423

541

788

TOTAL

8,145

7,239

4,209

5,876

268

121

12,622

13,236

Revenue from continuing operations for the three months ended December
31, 2012, was $12.6 million ($12.2 million exclusive of Hahn) compared
to $13.2 million in the same three month period in the previous fiscal
year. The decrease was a result of a decline in revenues in the wealth
management segment, specifically: a decrease in principal trading
revenue to $0.1 million from $0.9 million in the comparable quarter,
which included unrealized losses associated with broker warrants of
negative $0.1 million for the current quarter versus unrealized gains
of $0.8 million in the comparable quarter; and, reduced investment
banking mandates and brokerage commissions reflecting reduced market
trading volumes. The decrease was partially offset by an increase in
investment management revenues in the asset management segment driven
largely by an approximately commensurate increase in assets under
management.

Nine months ended December 31

thousands of Canadian dollars

Asset Management

WealthManagement

Corporate

Consolidated

2012

2011

2012

2011

2012

2011

2012

2011

Commissions and fees

24,783

22,250

8,839

10,848

48

16

33,670

33,114

Investment banking

-

-

2,046

4,905

185

(7)

2,231

4,898

Principal trading

-

-

217

(4,942)

-

-

217

(4,942)

Other

81

179

1,167

973

932

706

2,180

1,858

TOTAL

24,864

22,429

12,269

11,784

1,165

715

38,298

34,928

For the nine months ended December 31, 2012, revenue from continuing
operations was $38.3 million ($36.9 million exclusive of Hahn) versus
$34.9 million in the comparable period in the previous fiscal year. The
increase was primarily attributable to: an increase in principal
trading revenues in the wealth management segment to $0.2 million from
negative $4.9 million in the comparable period, including unrealized
gains on broker warrants of $1.2 million for the current period versus
unrealized losses of $8.9 million in the comparable period; and,
increased assets under management ("AUM") and related fees for Jovian's asset management segment. Partially
offsetting this increase were reductions in brokerage commissions and
investment banking revenues, both in Jovian's wealth management
segment, reflecting lower market trading volumes.

Expenses

Total net expenses from continuing operations were $14.4 million in Q3
fiscal 2013 ($13.9 million exclusive of Hahn), compared to $8.3 million
in the corresponding quarter in fiscal 2012 (exclusive of the Profit
Pool Payment Provision). For the nine months ended December 31, 2012,
total net expenses were $44.0 million ($42.0 million exclusive of Hahn)
versus $35.1 million in the comparable period last year (exclusive of
the Profit Pool Payment Provision). The prior year was inclusive of
income tax recoveries of $5.9 million and $6.4 million, respectively,
for the three and six month periods. The income tax recoveries in the
current fiscal period were $0.5 million and $1.2 million, respectively.

Adjusted EBITDA and EBITDA

Adjusted EBITDA and EBITDA from continuing operations for the three
months ended December 31, 2012 were both negative $1.3 million
(exclusive of Hahn, negative $1.2 million) compared to $0.7 and $0.4
million, respectively, during the three months ended December 31, 2011
(exclusive of the Profit Pool Payment Provision). Exclusive of Hahn and
the Profit Pool Payment Provision, the year-over-year reduction in
EBITDA in the quarter was primarily the result of a decline in wealth
management segment revenues. For the nine months ended December 31,
2012, Adjusted EBITDA and EBITDA from continuing operations were both
negative $2.9 million (exclusive of Hahn, negative $2.3 million) versus
negative $1.9 and $2.6 million, respectively, for the comparable period
last year (exclusive of the Profit Pool Payment Provision). Exclusive
of Hahn and the Profit Pool Payment Provision, the year-over-year
reduction in EBITDA during the current period was partially
attributable to: an increase in expenses in the asset management
segment, notably costs incurred to support the growth of the segment
and to promote the 40th anniversary of Jovian's subsidiary T.E. Wealth; and, increased
corporate expenses, including non-routine professional fees incurred
during the period.

Earnings

For the three and nine months ended December 31, 2012, Jovian reported
net loss from continuing operations of $1.8 million, or negative $0.19
per diluted share, and net loss of $5.7 million, or negative $0.60 per
diluted share, respectively. For the three and nine months ended
December 31, 2011, Jovian reported net loss from continuing operations
of $7.3 million, or negative $0.86 per diluted share, and net loss of
$12.4 million, or negative $1.44 per diluted share, respectively.
Exclusive of the Profit Pool Payment Provision, Jovian reported
earnings from continuing of operations of $4.9 million in Q3 fiscal
2012 and a loss of $0.2 million in the nine months ended December 31,
2011.

Liquidity and Capital Resources

Cash and those investments considered highly liquid included in
securities owned on the consolidated balance sheet were $28.4 million
as at December 31, 2012, compared with $55.0 million as at September
30, 2012.